Correlation Between Jayud Global and Radiant Logistics
Can any of the company-specific risk be diversified away by investing in both Jayud Global and Radiant Logistics at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Jayud Global and Radiant Logistics into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Jayud Global Logistics and Radiant Logistics, you can compare the effects of market volatilities on Jayud Global and Radiant Logistics and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Jayud Global with a short position of Radiant Logistics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jayud Global and Radiant Logistics.
Diversification Opportunities for Jayud Global and Radiant Logistics
0.62 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Jayud and Radiant is 0.62. Overlapping area represents the amount of risk that can be diversified away by holding Jayud Global Logistics and Radiant Logistics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Radiant Logistics and Jayud Global is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Jayud Global Logistics are associated (or correlated) with Radiant Logistics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Radiant Logistics has no effect on the direction of Jayud Global i.e., Jayud Global and Radiant Logistics go up and down completely randomly.
Pair Corralation between Jayud Global and Radiant Logistics
Considering the 90-day investment horizon Jayud Global Logistics is expected to under-perform the Radiant Logistics. In addition to that, Jayud Global is 3.29 times more volatile than Radiant Logistics. It trades about -0.01 of its total potential returns per unit of risk. Radiant Logistics is currently generating about 0.04 per unit of volatility. If you would invest 535.00 in Radiant Logistics on August 24, 2024 and sell it today you would earn a total of 187.00 from holding Radiant Logistics or generate 34.95% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 81.25% |
| Values | Daily Returns |
Jayud Global Logistics vs. Radiant Logistics
Performance |
| Timeline |
| Jayud Global Logistics |
| Radiant Logistics |
Jayud Global and Radiant Logistics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jayud Global and Radiant Logistics
The main advantage of trading using opposite Jayud Global and Radiant Logistics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jayud Global position performs unexpectedly, Radiant Logistics can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Radiant Logistics will offset losses from the drop in Radiant Logistics' long position.| Jayud Global vs. Maiden Holdings | Jayud Global vs. Employers Holdings | Jayud Global vs. Microbot Medical | Jayud Global vs. Assurant |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Portfolio Anywhere module to track or share privately all of your investments from the convenience of any device.
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